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Samsung is rumored to have delayed production at a new chip factory in the United States

Publish Date: 2023.12.27

  According to Bloomberg citing South Korean media reports, Samsung Electronics Co. has postponed production plans for its new chip factory in Taylor, Texas, which may impact the Biden administration's goal of increasing semiconductor supply to the United States.

  

  Choi Siyoung, President of Samsung's wafer foundry business, stated at an industry event in San Francisco that the $17 billion factory will begin mass production in 2025.

  

  In 2021, Samsung announced this investment and stated that the factory would start production in the second half of 2024. But a Samsung spokesperson stated that the company is currently unable to confirm its mass production plan.

  

  Previously, due to a lack of experienced construction workers and machine installation technicians, TSMC decided to postpone production at its new factory in Arizona from next year to 2025.

  

  Image source: Samsung

  

  President Biden's grand plan is to increase domestic chip production in the United States to avoid future chip supply disruptions like in 2021, which could result in several companies losing billions of dollars in revenue. But the delay in mass production by Samsung and TSMC's new chip factories in the United States is undoubtedly a blow to this plan.

  

  The revised plans of TSMC and Samsung mean that their new factories worth billions of dollars may not be able to start production until after next year's US presidential election.

  

  The environmental permit issue in the United States and the delay of the Biden administration in providing financial support have been troubling local chip projects.

  

  Biden signed the Chips Act and promised $100 billion in support for new semiconductor factories in the United States, but more than a year later, the Biden administration only provided $35 million in support to the US subsidiary of British aerospace company BAE Systems Plc.

  

  This article is sourced from the Gaishi Automotive Information Network

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